Budget or Die
Seriously, learn to budget or your ministry is toast
It’s that time of the year when many of us in ministry take a break from the things we care about and turn our attention to submitting a budget for the upcoming year. My friend Collie recently published a post (http://colliecoburnjr.com/defeating-the-budget-monster) that got me thinking through how over-my-head I felt in my first few years of ministry as I tried to create a system and process for budgeting. Now, as my friends and staff are well aware, budgeting season is one of my favorite parts of the year. Crazy, right?
(If you read that as though you only have to budget once and then you’re good-to-go… leave me a comment in the section below and we’ll have a conversation this week where I break the news to you that budgeting is a year-round and life-long process)
The game-changer for me was two-fold – First, I developed a way to project what a program or event was going to cost without feeling like I was simply guessing and, second, I learned to use the budgeting process as a chance to cast and realign vision for our ministry.
Developing Initial Projections
I’ve found it helpful, in developing ministry budgets, to figure out a formula for an initial cost projection for a program or event. Having a way to initially project what an event or program is going to cost helped me feel as though I wasn’t simply guessing at the cost of ministry.
As a starting point in my first 2 years of ministry, I used these two quick formulas for events for 3 yr olds thru 5th graders (nursery, parenting and middle school events need different numbers… but I’ll assume that the bulk of kids’ ministers out there budget primarily for the 3′s-5th grade demographic)…
In our context, ongoing events and regular programs cost about $1 per child per ministry hour.
Large events and events that only happen once or twice a year cost about $2 per child per ministry hour.
Starting there would give me a base for my budget… it’s then up to me to go through my list of needs and wants to see if I can actually pull it off.
I’ll quickly put those numbers to the test with 2 examples:
Let’s say you have 70 kids in an ongoing program like Sunday School. And, as it once was in my case, let’s now assume that kids in your program will be with you on a Sunday for an hour and a half. That’s $1 x 70 kids x 1.5 hours… or, $105 per Sunday, giving you an annual budget of $5460 for Sunday School.
A large event, like a Halloween Festival or a VBS, will use the other formula. For the sake of easy math, let’s say you run a VBS or Day Camp for 100 kids and that the program lasts from 9am-1pm (4 hours). That’s $2 x 100 x 4 for a total of $800 per day, giving you a budget of $4,000 for a 5 day program.
Having a formula you can work from, even if it’s different than mine, gives you a way to go back to your pastor or your board to explain why a one-time event like VBS will cost nearly as much as a year of Sunday School. And, as your numbers grow, you have something to point back to to make a case for the need for an increased budget line.
Budgeting as an outflow of Vision
When I came on staff at our church, children’s ministry was getting 0.8% of the church budget. That’s to say, for every $1 that was donated to the church, less than a penny was going to the programs and ministries dedicated to children under the age of 12. That was a staggering number.
Now, I’ll be honest, there was a tectonic shift that occurred at our church that began to address that figure – we hired a senior pastor who had an appreciation for where the church had been and a vision for where the church needed to go. He allowed us to begin looking at our budget numbers as expressions of what we thought mattered most. In the first few years, a large event that our church hosted every year was canceled and I took that money and invested it in books and resources that we could hand to parents – believing that a more lasting impact would happen in the life of a family if parents were equipped to have spiritual conversations with their kids… rather than a family simply attending one more large event our church was hosting.
A few weeks ago, The Orange Tour came to our church and Reggie Joiner sat down with our Senior Pastor to chat about life, ministry and the things that matter most. It’s a 15 minute conversation, but has some stand out moments.
If you begin watching at about 8 minutes, you’ll hear a throw away line just before the 9 minute mark about the year that our children’s ministry budget doubled. That was the year that our Senior Pastor told the church that children’s ministry mattered. We used our budget as an expression of the vision of the church. The numbers were more than numbers – they were a physical manifestation of what we knew to be true – ministry to kids matters and an excellent ministry is going to cost more money than what we had been spending.
You need to know how to budget.
Whether you’re in ministry or not, money doesn’t just happen – so you need to spend with an end in mind. As you look over your budget, household or ministry, what does it say about the things you value? Is there a way that you’re coming up with numbers, or are they simply hopeful shots in the dark? Can your spouse or your senior pastor articulate why you spend what you spend on the things you spend it on?
Budgeting season doesn’t have to be stressful – but it does have to matter.